Sarah Bush, Head of Residential at Cheffins, gives her reaction to the Bank of England's interest rate cut.
“The Bank of England has cut interest rates to 4% from 4.25%, taking the cost of borrowing to its lowest level since 2023. While this might spell bad news for savers, it will have a positive impact on confidence in the housing market. As mortgage costs will reduce, more homeowners will have the ability to borrow more and hopefully this ought to revitalise the housing market, while also reducing monthly bills.
The market has seen sluggish price growth since the end of the stamp duty holiday at the end of March, and the expectation is that buyers and sellers will both now be given the confidence needed to finance their next property purchase. Currently, the market is seeing a glut of supply which is not being balanced by demand levels. For those potential buyers out there who have been sitting on their hands and waiting for the right time to move, this could well be it. It is likely that there will be one further rate cut before the year is out, which could see a further reduction in borrowing rates. We would forecast that this will kickstart a growth in property prices and a more balanced market in terms of supply and demand.
For Cambridge and the surrounding area, we have seen consistent demand for well-presented and reasonably-priced properties, with the market buoyed by the exemplary local employment levels, lifestyle and schooling on offer, which has given the area a remarkable resilience in comparison to other parts of the country. However, the political and economic uncertainty of the past 18 months has had an effect. A sustained fall in interest rates could ease the cost-of-living pressures, helping more people take the next step on the property ladder.”
For further information and guidance on how Cheffins could help with your next property move, please contact 01223 214214, cambridge@cheffins.co.uk